Use the Table for the Question(s)below

question 12

Multiple Choice

Use the table for the question(s) below.
Capital Structure and Unlevered Beta Estimates for Comparable Firms
-The unlevered beta for Oakley is closest to:

• A)0.70.
• B)1.50.
• C)1.00.
• D)0.60.

---

Definitions:

Operating Lease

A lease agreement where the lessor retains ownership, and the asset is returned after the lease term ends.

Capital Lease

A lease considered to have the financial characteristics of asset ownership for accounting purposes, often with the lessee assuming the risks and benefits of ownership.

Total Liabilities

The sum of all financial obligations a company owes to outside parties, including loans, accounts payable, mortgages, and other debts.

Total Assets

The sum of all assets owned by a company, including current, fixed, intangible, and financial assets.